VZCZCXYZ0000
RR RUEHWEB

DE RUEHGB #3749/01 3340918
ZNR UUUUU ZZH
R 290918Z NOV 08 ZDK
FM AMEMBASSY BAGHDAD
TO SECSTATE WASHDC 0599

UNCLAS BAGHDAD 003749 
 
NEA FOR SCHMIERER, SALOOM 
NEA/I/ASSIST FOR MOSER 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID SOCI PREL ECON IZ
SUBJECT: FIRST YEAR WRAP UP: OPA'S QUICK RESPONSE FUND HELPS PRTS 
ENGAGE IRAQI COMMUNITIES 
 
¶1. SUMMARY:  Embassy Baghdad's Office of Provincial Affairs (OPA) 
recently concluded the first year of its $135 million Quick Response 
Fund (QRF) program.  QRF was created to finance Provincial 
Reconstruction Team (PRT) projects designed to promote 
socio-economic development and stability throughout Iraq.  During FY 
2008, $35 million was used to provide a rapid turn around on nearly 
2,100 project requests ranging in size from under $1,000 to 
$500,000.  The other $100 million was re-allotted to USAID to be 
used specifically to fund OPA's PRT-driven grant proposals.  While 
concentrating much of its effort on women's issues, community and 
economic development and promoting the rule of law, the QRF program 
also funded micro-finance loan programs that will assist more than 
4,000 people over the next year.  QRF enters its second year funded 
to the level of $74 million, and poised to build on the 
accomplishments of its first year.    END SUMMARY. 
 
BACKGROUND 
----------- 
¶2. In September 2007, OPA launched the QRF program as a flexible 
mechanism to fund PRT/ePRT projects in support of various Iraqi 
provincial government and non-government institutions.  More than 20 
PRTs/ePRTs participated in the initial stages of the program and 
this number quickly grew to 29.  Sub-cashiers were appointed at each 
PRT/ePRT and provided with an operating advance of up to $200,000. 
 
 
QRF INSTRUMENTS AND FY 2008 SPENDING 
--------------------------------------------- ---- 
¶3. Micro-Procurements (MPs) - NEA authorized the QRF program to 
execute procurements of locally-sourced goods and services for up to 
$25,000 per procurement, waiving the standard competitive bid 
requirements.  PRT/ePRT members, upon completion of training 
provided by OPA, received limited procurement warrants for up to 
$25,000 per project/proposal.  The PRTS/ePRTS used this 
Micro-Procurement authority to execute over 1500 projects totaling 
$18.8 million. 
 
¶4. Direct Procurements (DP) and Grants - Where PRT sponsored 
projects involved procurements in excess of $25,000 or when the 
goods could not be sourced locally, procurements were handled as 
Direct Procurements using standard contracting procedures.  The DP 
mechanism uses both Embassy Baghdad contracting and Joint 
Contracting Command-Iraq (JCC-I) services.  Over 100 projects were 
executed through DPs for a total of $14.1 million. In addition, 
grants were used to fund projects valued at $2.1 million. 
 
¶5. Large Value Grants through DAI - The remaining $76 million ($100 
million less fees of $24 million) was reallocated by NEA to USAID 
for implementation of larger-value grants through its contractor 
Development Alternatives Inc (DAI).  In FY 2008, 230 grant proposals 
totaling $37 million were authorized for implementation through DAI. 
 The remaining $39 million will carry forward into FY 2009. 
 
QRF PROJECTS 
------------ 
¶6. Examples of successful and sustainable projects funded through 
the QRF program include: 
 
a) Women's Initiatives: QRF supported the opening of a woman's 
health clinic to provide medical treatment, child care, education on 
sexual and domestic abuse, and a location where women could meet and 
associate freely.  Another QRF initiative targeted war widows and 
female-headed households, provided bee-farm starter kits and 
maintenance training to this vulnerable group.  This highly 
successful program was replicated among other PRTS/ePRTS and now, 
hundreds of widows are beekeepers operating self-sustaining farms. 
 
b) Economic Development through micro finance:  OPA agreed to fill a 
funding gap in USAID's micro finance program through the use of QRF 
Qfunding gap in USAID's micro finance program through the use of QRF 
program funds.  By the end of FY 2008, QRF had approved over $10 
million in grants supporting the micro finance sector -- standing up 
satellite micro finance offices, training loan officers and infusing 
loan capital into urban and rural sectors of Iraq.  These 
initiatives have quickly provided thousands of Iraqis small loans of 
up to $3,000, to support family businesses, expand existing 
operations and rebuild war ravaged homes, among other activities. 
The payback rate exceeds 95 percent. 
 
c) Rule of law and legal reforms:  In several governorates, 
internally displaced persons (IDPs) needed legal services to help 
them return home.  QRF supports a project in Baghdad to provide 
legal and administrative services to IDPs.  QRF program funding also 
supported rule of law projects such as legal representation and 
protection of due process rights.  One such project in Najaf helped 
provide legal representation to defendants who cannot afford, or do 
not have access to, counsel. 
 
 
LOOKING AHEAD TO FY 2009 
------------------------ 
 
¶7. OPA's QRF program begins its second year of operations well 
prepared, with the vital financial systems established and an 
adequately sized staff, to manage the funding of $74 million that is 
available to the program in FY 2009.  This level of funding is 
almost identical to the value of the projects that were executed and 
implemented in FY 2008. 
CROCKER